GROWTH. TRANSFER. LEGACY.
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Stephen Covey attributes this failure to the fact that business schools do not teach strategy execution. Business schools teach all aspects of strategic planning, but there are no courses about how to execute strategy. Perhaps this is one reason why 70% to 80% of businesses fail to realize the full value of their strategy. Recognizing this problem, we stress that the responsibility for the successful execution of the strategy must fall directly on the Chief Executive Officer.
A Harvard Business Review Blog (July 2012) attempted to tackle this issue in an article entitled, “How Smart Leaders Translate Strategy into Execution.” In a study based on over 150 case studies, researchers identified three steps that led to CEOs successfully transitioning their style of management to become successful Chief Execution Officers.
Lead the Leadership Team: Forming a leadership team that has completely bought into the strategy is the most important step. The HBR study cites, “Consensus on and commitment to the strategy provides a litmus test for determining who on the leadership team should stay and who should go.” These are tough decisions, but essential. We call this the “rule of thirds.” One third of the leadership team will be committed to the strategy, one third will be against it (preferring the status quo), and one third will wait to see who wins. Don’t allow the status quo to win.
Share the Story: Too often the Chief Executive Officer keeps the strategy a closely held secret. A successful Chief Execution Officer understands that even people who perform non-strategic roles in the company should be told the strategy story so that they become engaged and find ways to contribute to the success of the strategy.
Provide A System of Strategic Performance Feedback: People like to see the results of their efforts. They like to see how they are contributing to improved performance, and that the company is achieving its strategic objectives. HBR found that, “People like to be able to see their individual roles in making a difference.” An important responsibility of the Chief Execution Officers is to focus the organization on a few key strategic measures and to keep these measures in front of everyone.
The HBR article only highlighted three important steps to becoming a successful Chief Execution Officer, and there is so much more to successfully translating strategy to execution. Albu Consulting is skilled at helping our clients translate their strategies to action so that they realize the full value of their strategic plan. We are always interested in learning from you our readers, so please share with us your thoughts and experiences.
Two of Peter Drucker’s thought provoking quotes:
“Strategy is a commodity, execution is an art.”
“The best way to predict your future is to create it.”
Dick Albu is the founder and president of Albu consulting LLC, a strategy management consulting firm focused on engaging and energizing leadership teams of middle market private and family businesses. With offices in Stamford, CT, the firm is dedicated to helping its clients formulate robust business strategies and follow through on execution of key strategic initiatives. Dick Albu can be reached at 203-321-2147 or RAlbu@albuconsulting.com. Rob Krist, Managing Director can be reached at RKrist@albuconsulting.com. Please visit Albu Consulting’s website for more information at www.albuconsulting.com.
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